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Thinking about starting a LuLaRoe business? Here are five things you need to know:

If it sounds too good to be true...

Founded in 2012 by husband and wife team DeAnne Brady and Mark Stidham, LuLaRoe has developed into a $1 billion business with 80,000 distributors, many of whom are millennial mothers. LuLaRoe advertises itself as a way for mothers to hold lucrative jobs with flexible hours and limitless income, but the multi-level marketing strategy probably won't make you rich, according to Truth in Advertising, a Madison, Connecticut-based nonprofit group.

It will cost you

Launching a LuLaRoe business isn't cheap. An investment of $2,047 is needed for the basic package, which includes 50 (2-pack) one size fits all leggings, 20 (2-pack) small, medium, large and extra large leggings, 25 dresses and 10 (2-pack) "tween" leggings.

The most expensive package comes with 503 pieces of clothing and runs $9,058.25.

Sellers also have to buy additional clothing per month to stay eligible for bonuses, which cost anywhere from $2,000 to $5,000.

LuLaRoe doesn't allow its employees to make income projections or claims. They're also prohibited from sharing their personal LuLaRoe income. The company also makes no minimum income guarantee, explaining that “success with LuLaRoe results only from successful sales efforts, which require hard work, diligence, skill, persistence, competence, and leadership.”

Cost versus quality

LuLaRoe leggings cost $25 per pair, but complaints filed with the Federal Trade Commission show dozens of reports of defective clothing prone to holes and unreliable sizing. There were more than 80 complaints filed with the government agency last month.

Recruiting is a requirement

Under the company's compensation plan, salespeople have to recruit new distributors in order to be eligible for bonuses. To qualify as a "trainer," distributors must buy at least 100 pieces of clothing per month, recruit three other people and have 10 people working underneath them. Those 10 people also have to buy at least 1,750 items combined (per month) and recruit others.